CI Global Asset Management Continues Modernization of Product Lineup
Changes will simplify and streamline product lineup, making it easier for clients to work with CI GAM
TORONTO–(BUSINESS WIRE)–$CIXX #cigam—CI Global Asset Management (“CI GAM”) today announced a series of changes designed to streamline and enhance its product lineup.
They include the merger of 23 mutual funds and private pools into other mandates, name changes for nine funds, a risk rating change for CI Canadian Equity Income Class, a reduction in the investment minimums for CI Global Investment Grade Private Pool Class, and a portfolio management change for CI Global Health Sciences Corporate Class.
“The changes announced today are another step in modernizing our asset management business, an important strategic objective for our company,” said Kurt MacAlpine, Chief Executive Officer of CI Financial Corp., parent company of CI GAM. “Over the past 22 months, CI GAM has made exceptional progress in executing on this strategy, including introducing a broad range of new investment solutions designed to meet investors’ evolving needs and to help them reach their financial objectives in an increasingly challenging environment. Another major step was to integrate our in-house portfolio management boutiques into one global investment platform operating under the CI GAM brand.
“At the same time,” Mr. MacAlpine said, “we are simplifying and streamlining our existing product lineup, making it easier for advisors and investors to do business with us. The latest changes result from this ongoing comprehensive review of our products, a process that also incorporates feedback from financial advisors who recommend our investment funds to their clients.”
Fund mergers
CI GAM is proposing to merge the following funds to reduce duplication and to simplify its overall product lineup. The mergers will result in continuing funds with larger asset bases, allowing for increased portfolio diversification opportunities and a larger profile within the marketplace.
| Terminating Fund | Continuing Fund |
| CI American Managers® Corporate Class* | CI U.S. Stock Selection Corporate Class* |
| CI Balanced Yield Private Pool Class* | CI Global Asset Allocation Private Pool |
| CI Canadian All Cap Equity Income Class* | CI Canadian Equity Income Class* |
| CI Canadian Equity Income Fund | CI Canadian All Cap Equity Income Fund |
| CI Canadian Equity Income Private Pool Class* | CI Canadian Equity Private Pool |
| CI Canadian Small/Mid Cap Managed Fund* | CI Canadian Small/Mid Cap Equity Income Fund |
| CI Conservative Balanced Income Class* | CI Canadian Balanced Corporate Class |
| CI Conservative Balanced Income Fund | CI Canadian Balanced Fund |
| CI Corporate Bond Class* | CI Corporate Bond Corporate Class |
| CI Global Balanced Yield Private Pool | CI Global Asset Allocation Private Pool |
| CI Global Balanced Yield Private Pool Class* | CI Global Asset Allocation Private Pool |
| CI Global Dividend Opportunities Class* | CI Global Dividend Opportunities Corporate Class |
| CI Global Equity Income Private Pool Class* | CI Global Concentrated Equity Private Pool |
| CI Global Equity Momentum Private Pool* | CI Global Concentrated Equity Private Pool |
| CI Global Value Balanced Fund | CI Global Income & Growth Fund |
| CI High Yield Bond Class* | CI High Yield Bond Corporate Class |
| CI International Equity Income Private Pool Class* | CI International Equity Growth Private Pool |
| CI International Equity Value Private Pool* | CI International Equity Growth Private Pool |
| CI Marret Short Duration High Yield Fund* | CI Enhanced Short Duration Bond Fund |
| CI North American Small/Mid Cap Equity Private Pool* | CI Global Smaller Companies Private Pool |
| CI U.S. Equity Corporate Class* | CI U.S. Equity Class |
| CI U.S. Equity Private Pool Class* | CI U.S. Equity Private Pool |
| CI U.S. Equity Currency Neutral Private Pool Class* | CI U.S. Equity Private Pool |
*Securityholder approval required.
The management and administration fees payable by investors in respect of the continuing funds are the same or lower than those of the corresponding terminating funds. The costs and expenses associated with the mergers are being borne by CI GAM, not the funds.
Nineteen of the mergers will require the approval of the terminating funds’ securityholders and two of the mergers also will require the approval of the continuing funds’ securityholders. CI GAM has scheduled securityholder meetings to vote on the proposals for March 14, 2022. If approved, the mergers will take place on or after April 8, 2022. CI GAM has adopted this timeline to allow for increased flexibility in tax planning by affected investors and their advisors, given that these 19 mergers will result in a taxable disposition if the funds are held in a non-registered account.
The full details of the mergers will be provided to affected securityholders, who will receive a notification in February 2022 directing them to the CI GAM website for the information circular and other meeting materials. For mergers that do not require securityholder approval, securityholders of the terminating funds will be notified by letter in February 2022.
Name changes
The following name changes will be effective December 1, 2021, except for CI Canadian Equity Income Class, which will be renamed when the fund mergers take place on or after April 8, 2022. The changes are designed to better align the name of the funds with their mandates or, in the case of the Black Creek funds, to be consistent with CI GAM’s strategy of unifying the branding of its funds under the CI name.
| Current Fund Name | New Fund Name |
| CI Black Creek Global Balanced Corporate Class | CI Global Balanced Corporate Class |
| CI Black Creek Global Balanced Fund | CI Global Balanced Fund |
| CI Black Creek Global Leaders Corporate Class | CI Global Leaders Corporate Class |
| CI Black Creek Global Leaders Fund | CI Global Leaders Fund |
| CI Black Creek International Equity Corporate Class | CI International Equity Corporate Class |
| CI Black Creek International Equity Fund | CI International Equity Fund |
| CI Canadian Equity Income Class | CI Canadian All Cap Equity Income Class |
| CI Global Investment Grade Credit Private Pool | CI Investment Grade Bond Private Pool |
| CI Global Investment Grade Private Pool Class | CI Global Investment Grade Class |
Investment minimum reductions
The minimum initial investment for CI Global Investment Grade Private Pool Class (to be renamed CI Global Investment Grade Class) will be reduced to $500 from $25,000, effective December 1, 2021. The change applies to Series A, F and P shares and will make the fund, the winner of two 2021 Refinitiv Lipper Fund Awards, accessible to a wider range of income-seeking investors.
Risk rating change
The risk rating for CI Canadian Equity Income Class will be changed to medium from low-to-medium, effective today. The risk rating change is based on the risk classification methodology mandated by the Canadian Securities Administrators to determine the risk level of mutual funds. CI GAM reviews the risk rating for each of the funds it manages at least on an annual basis, as well as when a fund undergoes a material change. This change is the result of an annual review and is not the result of any change to the investment objectives, strategies or management of the fund.
Portfolio management change
CI GAM has been named portfolio advisor to CI Global Health Sciences Corporate Class, effective on or about March 31, 2022. CI GAM believes the fund will benefit from the deep investment capabilities of the CI GAM team, including its expertise in global industry sectors. Jeff Elliott, a specialist in the global health-care sector and whose credentials include a PhD in Molecular Biology and Biochemistry, an MBA and the CFA designation, will be Lead Portfolio Manager. CI GAM is replacing Altrinsic Global Advisors, LLC, the current sub-advisor to the fund.
The Independent Review Committee of the funds has reviewed the proposed mergers and portfolio management change with respect to potential conflict of interest matters and provided its positive recommendation or approval, as applicable, having determined that the changes achieve a fair and reasonable result for each of the funds.
About CI Global Asset Management
CI Global Asset Management is one of Canada’s largest investment management companies. It offers a wide range of investment products and services and is on the Web at www.ci.com. CI Global Asset Management is a subsidiary of CI Financial Corp. (TSX: CIX, NYSE: CIXX), an independent company offering global asset management and wealth management advisory services with approximately $331.8 billion in assets as of October 31, 2021.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns net of fees and expenses payable by the fund (except for figures of one year or less, which are simple total returns) including changes in security value and reinvestment of all dividends/distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.
This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase mutual funds managed by CI Global Asset Management and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Every effort has been made to ensure that the material contained in this document is accurate at the time of publication. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. These investments may not be suitable to the circumstances of an investor.
The Refinitiv Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Refinitiv Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Refinitiv Lipper Fund Award. For more information, see lipperfundawards.com. Although Refinitiv Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Refinitiv Lipper. CI Global Investment Grade Private Pool Class (Series P) was awarded the 2021 Refinitiv Lipper Fund Awards in the global fixed-income category for 3 and 5 years ending July 31, 2021, out of a classification total of 53 funds (3 years) and 42 funds (5 years). Performance for the Fund for the period ended October 31, 2021 was 3.7 (1 year), 8.2% (3 years), 5.4% (5 years) and 5.3% (since inception; 2016-07-04).
CI Global Asset Management is a registered business name of CI Investments Inc. ©CI Investments Inc. 2021. All rights reserved.
Contacts
Murray Oxby
Vice-President, Corporate Communications
416-681-3254
[email protected]
